QuickBooks Tip for Home Service Pros: How to Run a Balance Sheet and Why It Matters
If you own a home service business—plumbing, HVAC, landscaping, cleaning, or handyman work—keeping up with your books can be just as important as keeping up with your tools. One of the most valuable financial reports you should understand is the balance sheet.
A balance sheet helps you track your assets (what you own), liabilities (what you owe), and equity (your business value). Reviewing it regularly can help you stay in control of your business finances, spot red flags early, and make better decisions.
What Is a Balance Sheet?
A balance sheet is a snapshot of your business's financial position at a specific point in time. It includes:
Assets: Cash, tools, vehicles, equipment, and accounts receivable
Liabilities: Business credit cards, loans, equipment financing, and payroll taxes
Equity: What’s left after subtracting liabilities from assets (your ownership value)
How to Run a Balance Sheet in QuickBooks Online (QBO)
Log into QuickBooks Online
Go to the Reports tab
Search for "Balance Sheet" and click it
Choose your date range to Today or Last month (it shows the balance as of a specific date)
Click Run Report
You’ll now see a clear breakdown of your business’s financial position.
Why It Matters for Home Service Professionals
✅ Know if you’re truly profitable—not just busy
✅ Track tool and equipment value and depreciation
✅ Stay prepared for tax season or applying for financing
✅ Identify cash flow issues early before they become big problems
Common Mistakes to Avoid
❌ Not updating equipment purchases
❌ Forgetting to track liabilities like loans or credit cards
❌ Ignoring old, inaccurate data that skews your numbers
❌ Only reviewing reports during tax season
FAQ
Q: How often should I review my balance sheet?
A: Ideally, monthly. It helps you catch problems early and plan ahead.
Q: What if I don’t understand what I’m looking at?
A: A bookkeeper or QuickBooks ProAdvisor can walk you through it and help make it easy.
Q: Can I run this on my phone?
A: Yes, QuickBooks Online lets you view reports from mobile devices.
📅 Ready to get a clearer picture of your business finances?
Book a call with Dr. Bryan Raya, QuickBooks ProAdvisor:
👉 https://calendly.com/dbr_bookkeeping/book-a-free-call-with-dbr
Let’s start Doing Business Right.
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